KARACHI (Commodity Online): Bilateral trade between India and Pakistan seems improved as Pakistan has placed an order of 2500 tons of basmati rice from India soon after the liberalaisattion of the liberalisation of trade between the two nations.
According to government officials, Pakistani traders has placed an order of for at least 2,500 tonnes rice.
Meanwhile, the farmers and traders in the Pakistan are worried over the recent development as importing commodities from the near by nation will affect the market sentiments (especially if it is from India as India is offering rice at cheaper rate then other growing countries in the world) eventually lower the profit.
On the back of record production, India had lowered the Minimum Export Price (MEP) of basmati rice to $700 per ton from $900 per ton.
While some traders in Pakistan believes that the rice can be re-exported to other nation which could remove the loss of the fasrmers andf traders.
The development took place soon after the announcement of 636 negative items prepared by the Ministry of Commerce, while replacing the already existing positive list for trade with India, while rice was excluded from the list.
India is the largest producer of basmati rice in the world and is expected to produce around 7.5 million tons for 2011-12.
